FAQs

MAGNE Frequently Asked Questions (FAQ)

  1. What are M Hash L2's performance metrics?

    M Hash L2 currently offers:

  • Block time: ~2 seconds
  • TPS: thousands of transactions per second depending on gas usage and block size
  • Finality: Single Slot Finality for fast and secure confirmations.

  1. What is a DEX?

    A DEX (Decentralized Exchange) is a protocol that enables on-chain token swaps entirely through smart contracts, without relying on a centralized intermediary.

  2. What is a swap?

    A swap is the process of exchanging one token for another — for example, swapping USDCforUSDC for MHA means selling USDC and buying MHA.

  3. How much does it cost to swap?

    Swap fees vary depending on the pool and are typically 0.05%, 0.1%, 0.3%, or 1%. Always check the fee before executing a swap.

  4. What is liquidity?

    Liquidity refers to the amount of a token available for swapping. Higher liquidity = lower slippage = better pricing.

  5. What is a liquidity pool?

    A liquidity pool consists of two or more tokens deposited by users, enabling token swaps on the DEX.

  6. What is a liquidity provider?

    Liquidity providers (LPs) are users who deposit tokens into liquidity pools. They earn a share of the trading fees generated in those pools.

  7. What is APY?

    APY stands for Annual Percentage Yield — the yearly rate of return from providing liquidity, mostly generated from swap fees.

  8. What is $MHA?

    $MHA is the native and only token of the MAGNE network. It powers gas, staking, governance, and incentives.

  • Total supply is fixed.
  • 15% of the total supply is allocated to validator and staking rewards.
  • Emissions follow a halving schedule:

    • Year 1: 7.5% released

    • Year 2: 3.75% released

    • Year 3: 1.875% released

    • And so on.

      This ensures long-term sustainability and controlled token inflation.

  1. Does MAGNE use a dual-token system?

    No. MAGNE uses a single-token model where $MHA powers gas, staking, incentives, and governance.

  2. Can anyone become a validator?

    Yes. Anyone can become a validator, but they must meet both staking requirements and node hardware standards to ensure network security and stability.

  3. How are validators selected?

    Validators are not determined by a fixed number of nodes but by the total amount of $MHA staked across the network.

  • The number of active validators will be determined through governance and community discussions.
  • Reward distribution is based on the proportion of tokens staked by each validator relative to the total network stake.
  • If there are few nodes, the reward model can be dynamically adjusted, with a Rank-based incentive mechanism applied if needed.
  1. What are the staking requirements for validators?
  • Minimum stake per validator: 250,000 $MHA
  • Maximum stake per validator: 10,000,000 $MHA (subject to governance changes)
  • Higher stake = higher chance of being in the active validator set and receiving a larger share of rewards.
  1. How are validator rewards distributed?
  • Validator rewards come from the 15% emission pool, halving annually.
  • Reward share per validator = (Validator stake ÷ Total network stake) × annual emission.
  • When the number of validators is low, distribution may be adjusted using Rank incentives to favor high-quality nodes.

  1. What are the node hardware requirements?

    Validators must meet minimum technical standards to maintain stable and secure operations, including but not limited to:

  • Reliable server infrastructure

  • High availability and low network latency

  • Adequate CPU, RAM, storage, and bandwidth

  • High uptime to ensure block production and finality

    Only nodes that meet these standards are eligible for validator rewards.

  1. Can the number of validators change over time?

    Yes. The number of validators is dynamic and depends on total network stake, governance decisions, and network growth. In early stages with fewer validators, reward allocation will be adjusted to maintain fair incentives and network security.

  2. What is the Rank incentive mechanism?

    The Rank incentive mechanism ensures high-performance nodes receive greater rewards when validator numbers are low or distribution is imbalanced.

  • Validators are ranked based on uptime, performance, and block production.
  • Higher rank = higher reward weight.
  • This keeps the network stable and encourages quality node operation.

  1. Do I automatically earn rewards after providing liquidity?

    No. You must stake your LP token into the corresponding Reward Vault to earn PoL (Proof-of-Liquidity) rewards. Rewards are accumulated and must be claimed manually.

  2. How do I earn PoL rewards?

  • Provide liquidity and receive an LP token.
  • Stake the LP token into a whitelisted Reward Vault.
  • If a validator allocates emissions to that Vault, you earn $MHA over time.
  • Claim your rewards manually from your wallet.
  1. Who can vote or submit proposals?
  • Any $MHA holder can participate in governance voting.
  • Proposal submission may require holding a minimum amount of $MHA (e.g., 10,000 tokens).
  • Validator set size, node requirements, and emission parameters can be updated through governance.

  1. Can Vaults route emissions to specific pools?

    Yes. Each Reward Vault corresponds to a specific receipt token (e.g., LP token). dApps can request Vaults for particular pools, and validators can allocate emissions to boost targeted liquidity.

  2. What is the overall validator incentive model?

    MAGNE’s validator incentive design is based on:

  • Annual halving of emissions

  • Stake-weighted reward distribution

  • Dynamic validator set size

  • Rank-based adjustments for quality performance

    This model ensures strong early incentives, sustainable long-term rewards, and network stability.